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The bitcoin price has been volatile since the start of the year. At one time, it was rising, and then it plunged. Currently, the bulls are awake again. Bitcoin price has rallied to around $9,439 with the bulls still showing that they do not intend to let go of the crypto market’s most valuable asset.
The flagship token has remained above the $9K mark, and commentators think there is momentum developing to surge higher. Earlier on January 29, Bitcoin plunged below $9,000 to a daily low at around $8,879. At that time, some analysts issued dismayed calls suggesting that it would revisit the $8,300 to $8,500 range.
Although the thought of any form of a pullback was the least expected and desired scenario amongst traders, it appears like a reasonable development. The pullback is normal, given that Bitcoin’s rallied from $8,200 at the start of the week.
Previously, some analysts explained that after the primary overhead resistance levels are dismantled, most assets must retrace to the support before they resume an uptrend. Hence, as it is evident from today’s v Crypto Fear and Greed Index data, the drop below $9,000 did not weigh significantly on the trading sentiment.
The Bitcoin Price Charts
The hourly chart reveals that a high volume spike must have propelled the most recent surge to $9,439. Then, the following sell volume candle indicates that the 3.4% move triggered a significant block of sell orders from the traders who were anticipating that $9,500 would present a strong resistance.
Since rising from the lows of $6,400 on December 18, 2019, Bitcoin has done a tremendous job of flipping strong resistance levels to new strong supports. The most recent flip is the case of $8,600 that was turned into support. Today’s move may have set $9,200 to a new dependable support level.
Now that there is a new 2020 higher-high, traders are keenly watching to see whether the bulls will push higher to turn the $9,400 resistance into support. If that happens, it will create an excellent foundation for Bitcoin to make a fresh major attempt to head above $9,600 and $9,948.
At the moment, both the 4- and 6-hour charts are showing a tweezer top candlestick pattern. This pattern is known to hint at an upcoming price reversal. Moreover, the relative strength index (RSI) has also reversed course plunging lower in the overbought region.
Possibilities
In the scenario that traders book profits and the Bitcoin price experiences a mild correction, it will be interesting to see if the underlying supports at $9,100, $8,900, $8,650 will stand their ground.
At the moment, the BTC price has already popped above the upper Bollinger Band arm right near the tweezer top. After several strong upside moves, it is normal for the price to retrace to the moving average of the Bollinger Bands indicator.
In the case that $9,100 and $8,900 fail to hold, traders might shift their focus in search of a bounce. The bounce may come at the moving average that is currently aligned at the $8,650 support.
The General Market
The general crypto market cap now stands around $257 billion, with Bitcoin’s dominance rate standing at 66.1%. Some of the most notable gainers include Bitcoin Cash with 7.72%, Cardano 9.46%, TRON 11.75%, IOTA 15.25%, and Ethereum Classic 18.1%.